Carrier Global (CARR - Free Report) has reported third-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate by 7.6%. Further, the figure increased 5.9% year over year.Net sales of $5.341 billion improved 7% year over year, owing to solid momentum across HVAC, transport refrigeration, and Fire and Security.
However, the top line missed the Zacks Consensus Estimate of $5.343 billion.
Product sales (84.4% of net sales) increased 7.6% year over year to $4.5 billion. Service sales (15.6% of net sales) grew 2.7% year over year to $831 million.
Quarterly Details
HVAC revenues (57.2% of net sales) increased 5.6% year over year to $3.05 billion.Refrigeration revenues (18.9% of net sales) rose 15.4% from the year-ago quarter to $1.01 billion.
Fire & Safety revenues (25.8% of net sales) grew 4% from the year-ago quarter to $1.4 billion.
The cost of goods sold was $3.2 billion, up 9.9% year over year. The cost of services sold rose 1.9% to $568 million.
Selling, general & administrative, and research & development expenses grew 9.8% and 23% year over year to $748 million and $123 million, respectively.
Adjusted operating margin decreased 1% year over year to $858 million. The operating margin contracted 120 basis points on a year-over-year basis to 16.1%.
Balance Sheet
As of Sep 30, 2021, Carrier had cash and cash equivalents of $2.7 billion compared with $2.6 billion as of Jun 30, 2021.Total debt (including current portion), as of Sep 30, 2021, was $9.69 billion compared with $9.72 billion as of Jun 30, 2021.
The company generated $579 million in cash from operations compared with $561 million recorded in the previous quarter.
Capital expenditure stood at $74 million and free cash flow was $505 million for the third quarter.
Guidance
For 2021, Carrier expects sales growth of 16%. Previously, the same was expected between 14% and 16%. Organic sales growth is expected at 13% compared with 10-12% mentioned earlier. The Zacks Consensus Estimate for 2021 revenues is pegged at $20.2 billion.Adjusted earnings are projected at $2.20 per share compared with the previously mentioned $2.10-$2.20. The Zacks Consensus Estimate for earnings is pegged at $2.21 per share.
The free cash flow guidance is unchanged at $1.9 billion.
Zacks Rank & Stocks to Consider
Currently, Carrier has a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are Trimble (TRMB - Free Report) , Semtech Corp. (SMTC - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Trimble, Semtech and Apple are currently projected at 10%, 12.5%, and 12.5%, respectively.
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Carrier Global (CARR - Free Report) has reported third-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate by 7.6%. Further, the figure increased 5.9% year over year.
Net sales of $5.341 billion improved 7% year over year, owing to solid momentum across HVAC, transport refrigeration, and Fire and Security.
However, the top line missed the Zacks Consensus Estimate of $5.343 billion.
Product sales (84.4% of net sales) increased 7.6% year over year to $4.5 billion. Service sales (15.6% of net sales) grew 2.7% year over year to $831 million.
Quarterly Details
HVAC revenues (57.2% of net sales) increased 5.6% year over year to $3.05 billion.
Refrigeration revenues (18.9% of net sales) rose 15.4% from the year-ago quarter to $1.01 billion.
Fire & Safety revenues (25.8% of net sales) grew 4% from the year-ago quarter to $1.4 billion.
The cost of goods sold was $3.2 billion, up 9.9% year over year. The cost of services sold rose 1.9% to $568 million.
Selling, general & administrative, and research & development expenses grew 9.8% and 23% year over year to $748 million and $123 million, respectively.
Adjusted operating margin decreased 1% year over year to $858 million. The operating margin contracted 120 basis points on a year-over-year basis to 16.1%.
Balance Sheet
As of Sep 30, 2021, Carrier had cash and cash equivalents of $2.7 billion compared with $2.6 billion as of Jun 30, 2021.
Total debt (including current portion), as of Sep 30, 2021, was $9.69 billion compared with $9.72 billion as of Jun 30, 2021.
The company generated $579 million in cash from operations compared with $561 million recorded in the previous quarter.
Capital expenditure stood at $74 million and free cash flow was $505 million for the third quarter.
Guidance
For 2021, Carrier expects sales growth of 16%. Previously, the same was expected between 14% and 16%. Organic sales growth is expected at 13% compared with 10-12% mentioned earlier. The Zacks Consensus Estimate for 2021 revenues is pegged at $20.2 billion.
Adjusted earnings are projected at $2.20 per share compared with the previously mentioned $2.10-$2.20. The Zacks Consensus Estimate for earnings is pegged at $2.21 per share.
The free cash flow guidance is unchanged at $1.9 billion.
Zacks Rank & Stocks to Consider
Currently, Carrier has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Trimble (TRMB - Free Report) , Semtech Corp. (SMTC - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Trimble, Semtech and Apple are currently projected at 10%, 12.5%, and 12.5%, respectively.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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